Disclosures Formats Sep 13

8/12/2019 Disclosures Formats Sep 13

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LL H B D B NK

Table DF – 1 Scope of Application

Position as on 30.09.2013

Qualitative Disclosures

a) The name of the top Bank in thegroup to which the frameworkapplies.

b) An outline of differences in thebasis of consolidation foraccounting and regulatorypurposes, with a briefdescription of the entities withinthe group

i) that are fully consolidated;ii) that are pro-rata

consolidate;iii) that are given a deduction

treatment; andiv) That are neither

consolidated nor deducted(e.g. where the investmentis risk-weighted).

a) The framework of disclosures applies to Allahabad Bank,which is the top Bank in the group.

b) The Bank’s subsidiary /Associates and Joint venture are asunder:

Subsidiary:

Name of Subsidiary

The Bank has one subsidiary as under:

Country ofIncorporation

Ownership(%)

All Bank Finance India 100%

Associates

Name of Banks

: One Regional Rural Bank sponsored by the Bank isas under.

Country ofIncorporation

Ownership(%)

Allahabad UP Gramin Bank* India 35%

* Our two erstwhile RRBs in the state of UP, namely LucknowKshetriya Gramin Bank and Triveni Kshetriya Gramin Bank haveceased to exist and a new amalgamated RRB, i.e., AllahabadUP Gramin Bank has come into existence w.e.f. 02.03.2010.





LL H B D B NK

Table DF – 5Credit Risk Mitigation: Disclosures

for Standardised Approaches



1. A comprehensive policy on valuation of property, plant & machinery, has been approved by the

Board.

2. The collaterals commonly used by the Bank as the risk mitigants comprise of the financial

collaterals (i.e., Bank deposits, govt./postal securities, life insurance policies, gold jewellery, units ofmutual funds etc.), various categories of movable and immovable assets/landed properties etc.

3. Where personal/corporate guarantee is considered necessary, the guarantee is preferably that of

the principal members of the group holding shares in the borrowing company/ flagship Group

Company of corporate. It is ensured that their estimated net worth is substantial enough for them to

stand as guarantors.

4. In line with the regulatory requirements, the Bank has put in place a well-articulated Policy on Credit

Risk Mitigation and Collateral Management duly approved by the Bank’s Board.5. As advised by RBI, the Bank has adopted the comprehensive approach relating to credit risk

mitigation under Standardised Approach, which allows fuller offset of eligible securities against

exposures, by effectively reducing the exposure amount by the value ascribed to the securities.

Thus the eligible financial collaterals have been used to reduce the credit exposure in computation

of credit risk capital. In doing so, the Bank has recognised specific securities namely (a) Bank

Deposits (b) Life Insurance Policies (c) NSCs / KVPs (d) Government Securities, in line with the

RBI guidelines on the matter.6. Besides, other approved forms of credit risk mitigation are “On Balance Sheet Netting” and

availability of “Eligible Guarantees”. On balance sheet netting has been reckoned to the extent of

the deposits available against the loans/advances of the borrower (to the extent of exposure) as per



LL H B D B NK

Table DF – 6

Securitisation: Disclosure for

Standardised Approach Qualitative

Disclosures



(a) The general qualitative disclosurerequirement with respect to

securitisation, including a discussion of:

• the Bank's objectives in relation tosecuritisation activity, including theextent to which these activitiestransfer credit risk of theunderlying securitised exposuresaway from the Bank to other

entities;• the nature of other risks (e.g.,

liquidity risk) inherent insecuritized assets

• the various roles played by theBank in the securitization process(e.g., originator, investor, servicer,provider of credit enhancement,liquidity provider) and an

indication of the extent of theBank’s involvement in each ofthem

• a description of the process in

No securitization during the half-year ended30.09.2013.



LL H B D B NKtreated as sales or financings

• Methods and key assumptions(including inputs) applied invaluing positions retained orpurchased

• Changes in methods and keyassumptions from the previousperiod and impact of the changes

• Policies for recognizing liabilitieson the balance sheet forarrangements that could requirethe Bank to provide financialsupport for securitised assets.

(c) In the Banking book, the names ofECAIs used for securitisations and thetypes of securitisation exposure forwhich each agency is used. Not applicable.

SL

NoQuantitative Disclosures: Banking Book

(Amount Rs. in Crores)

(d) The total amount of exposures securitised by the Bank(e) For exposures securitized, losses recognised by the Bank

during the current period broken down by exposure type (e.g.,

credit cards, housing loans, auto loans, etc. detailed by

underlying security)

(f) Amount of assets intended to be securitized within a year

(g) Of (f), amount of assets originated within a year

(h) Total amount of exposures securitized (by exposure type) andunrecognized gain or losses on sale by exposure type.

(i) Aggregate amount of:





LL H B D B NK

Table DF – 7 Market Risk in Trading Book


Qualitative disclosures

(a) Market Risk:

1. Market Risk is defined as the possibility of loss caused by changes/movements in the market

variables such as interest rates, foreign currency exchange rates, equity prices and commodity

prices. Bank’s exposure to Market risk arises from investments (interest related instruments and

equities) in trading book (both AFS and HFT categories) and the Foreign Exchange positions.

The objective of the market risk management is to minimize the impact of losses on earningsand equity.

2. The Bank has put in place Board approved Policies on Investments, Foreign Exchange

Operations, Trading in Forex Market, Derivatives, Asset Liability Management and Stress

Testing for effective management of market risk. The policies ensure that operations in fixed

income securities, equities, foreign exchange and derivatives are conducted in accordance with

sound business practices and as per extant regulatory guidelines.

3. Bank uses ‘Cash-flow Approach’ and ‘Stock Approach’ for measuring, monitoring and managingLiquidity Risk. Under cash flow approach, mismatches under various time buckets are analyzed

vis-à-vis tolerance limits. Under stock approach, various ratios like Liquid Assets to Total

Assets, Purchased Funds to Liquid Assets, Loans to Core Deposits etc. are calculated and

analyzed against tolerance limits specified in the ALM Policy. Appropriate corrective measures,

wherever required are taken as per directives of ALCO / Board. The Bank has also put in place

mechanism for Contingency Funding Plan to assess the projected liquidity position of the Bank

under stressed scenarios.4. Interest Rate Risk is managed through use of Gap analysis of rate sensitive assets and

liabilities and monitored through prudential tolerance limits. Bank uses Traditional Gap Analysis

(TGA) for assessing the impact of Interest Rate Risk on its Net Interest Income over a short



LL H B D B NK

Table DF – 8 Operational Risk



1. Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people

and systems or from external events. Operational risk includes legal risk but excludes strategic

and reputation risks.

2. The Bank has framed Operational Risk Management Policy duly approved by the Board.

Supporting policies adopted by the Board which deal with management of various areas of

operational risk are (a) Compliance Risk Management Policy (b) Forex Risk Management Policy

(c) Policy Document on Know Your Customers (KYC) and Anti Money Laundering (AML)

Procedures (d) Business Continuity and Disaster Recovery Policy (e) Fraud Risk Management

Policy etc.

3. The Operational Risk Management Policy adopted by the Bank outlines organization structure anddetailed processes for management of operational risk. The basic objective of the policy is to

closely integrate operational risk management system into the day-to-day risk management

processes of the Bank by clearly assigning roles for effectively identifying, assessing, monitoring

and controlling / mitigating operational risks and by timely reporting of operational risk exposures,

including material operational losses. Operational risks in the Bank are managed through

comprehensive and well articulated internal control frameworks.

4. In line with the final guidelines issued by RBI, the Bank has adopted the Basic Indicator

Approach for computing capital for Operational Risk.



LL H B D B NK

Table DF – 9Interest Rate Risk in the

Banking Book (IRRBB)



(a) Interest Rate Risk in the Banking Book:

1. Interest Rate Risk is the risk where changes in market interest rates might adversely affect a

Bank’s financial condition. The immediate impact of changes in interest rates is on Bank’s earnings

i.e.

Net Interest Income (NII). A long -term impact of changing interest rates is on Bank’s Market Value

of Equity (MVE) or Net Worth as the economic value of Bank’s assets, liabilities and off-balance

sheet positions get affected due to variation in market interest rates.

2. The impact on income (Earnings perspective) is measured through use of Traditional Gap analysis,

which measures mismatch between rate sensitive liabilities and rate sensitive assets (including off-

balance sheet positions) over different time intervals, as at a given date. The impact of interest rate

risk on NII is assessed by applying notional rate shock of 100,200 & 300 bps on gaps in various

time bucket up to a period of one year as prescribed in Bank’s ALM Policy.

3. The Bank has adopted Duration Gap Analysis (DGA) to measure interest rate risk in its balance

sheet from the economic value perspective. The Bank computes bucket-wise Modified Duration of

Rate sensitive Liabilities and Assets using the suggested common maturity, coupon and yield

parameters, prescribed by RBI/ALCO. The modified Duration Gap is computed from weighted

average modified duration of total rate sensitive assets and rate sensitive liabilities. The impact of

change in interest rate on net worth is analyzed by applying a notional interest rate shock of100,



LL H B D B NK

Table DF – 11 Composition of Capital


(Rs. in million)

Particular Amount

Amounts

Subject To

Pre-Basel III

Treatment

Ref No.

Common Equity Tier 1 capital: instruments and reserves

1Directly issued qualifying common share capital plus related

stock surplus (share premium)22961.05

A1 +

A2

2 Retained earnings 80825.31

B1 +

B2+ B3+B4

3 Accumulated other comprehensive income (and other reserves) -

4Directly issued capital subject to phase out from CET1 (only

applicable to non-joint stock companies1)-

Public sector capital injections grandfathered until 1 January

2018-

5Common share capital issued by subsidiaries and held by third

parties (amount allowed in group CET1)-

6 C E it Ti 1 it l b f l t dj t t 103786 36



LL H B D B NK15 Defined-benefit pension fund net assets 0.00

16Investments in own shares (if not already netted off paid-in

capital on reported balance sheet)0.00

17 Reciprocal cross-holdings in common equity 20.16 100.82

18

Investments in the capital of Banking, financial and insurance

entities that are outside the scope of regulatory consolidation, net

of eligible short positions, where the Bank does not own more

than 10% of the issued share capital (amount above 10%

threshold)

0.00

19

Significant investments in the common stock of Banking,

financial and insurance entities that are outside the scope of

regulatory consolidation, net of eligible short positions (amount

above 10% threshold)

0.00

20 Mortgage servicing rights (amount above 10% threshold) 0.00

21Deferred tax assets arising from temporary differences (amount

above 10% threshold, net of related tax liability)0.00

22 Amount exceeding the 15% threshold 0.00

23of which: significant investments in the common stock of

financials0.00

24 of which: mortgage servicing rights 0.00

25 of which: deferred tax assets arising from temporary differences 0.00

26 National specific regulatory adjustments (26a+26b+26c+26d) 2989.60

26a Of which: Investments in the equity capital of unconsolidatednon-financial subsidiaries

0.00

26bOf which: Investment in the equity capital of unconsolidated non-



LL H B D B NKAdditional Tier 1 capital: instruments

30Directly issued qualifying Additional Tier 1 instruments plus

related stock surplus (31+32)2700.00

31 of which: classified as equity under applicable accountingstandards (Perpetual Non-Cumulative Preference Shares)

0.00

32of which: classified as liabilities under applicable accounting

standards (Perpetual debt Instruments)2700.00 C1

33Directly issued capital instruments subject to phase out from

Additional Tier 10.00

34

Additional Tier 1 instruments (and CET1 instruments not

included in row 5) issued by subsidiaries and held by third parties

(amount allowed in group AT1)

0.00

35 of which: instruments issued by subsidiaries subject to phase out 0.00

36 Additional Tier 1 capital before regulatory adjustments 2700.00

Additional Tier 1 capital: regulatory adjustments

37 Investments in own Additional Tier 1 instruments 0.00

38 Reciprocal cross-holdings in Additional Tier 1 instruments 1.00 5.00

39


entities that are outside the scope of regulatory consolidation, net

of eligible short positions ,where the Bank does not own more

than 10% of the issued common share capital of the entity

(amount above 10% threshold)

0.00

40

Significant investments in the capital of Banking, financial and

insurance entities that are outside the scope of regulatory 0.00



LL H B D B NK43 Total regulatory adjustments to Additional Tier 1 capital 147.70

44 Additional Tier 1 capital (AT1) 2552.30

44a Additional Tier 1 capital reckoned for capital adequacy 2552.30

45 Tier 1 capital (T1 = CET1 + AT1) (row 29 + row 44a) 103255.55

Tier 2 capital: instruments and reserves

46Directly issued qualifying Tier 2 instruments plus related stock

surplus0.00

47Directly issued capital instruments subject to phase out from Tier

2

24747.60 C2+ C3

48

Tier 2 instruments (and CET1 and AT1 instruments not included

in rows 5 or 34) issued by subsidiaries and held by third parties

(amount allowed in group Tier 2)

0.00

49 of which: instruments issued by subsidiaries subject to phase out 0.00

50 Provisions 13160.96 D1+ D2

51 Tier 2 capital before regulatory adjustments 37908.56

Tier 2 capital: regulatory adjustments

52 Investments in own Tier 2 instruments 0.00

53 Reciprocal cross-holdings in Tier 2 instruments 87.31 436.54

54


entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the Bank does not own more

than 10% of the issued common share capital of the entity

( b h 10% h h ld)

0.00



LL H B D B NK57 Total regulatory adjustments to Tier 2 capital 234.01

58 Tier 2 capital (T2) 37674.55

58a Tier 2 capital reckoned for capital adequacy 37674.55

58b Excess Additional Tier 1 capital reckoned as Tier 2 capital 0.00

58cTotal Tier 2 capital admissible for capital adequacy (row 58a

+ row 58b)37674.55

59 Total capital (TC = T1 + T2) (row 45+row 58c) 140930.10

RISK WEIGHTED ASSETS IN RESPECT OF AMOUNTS

SUBJECT TO PRE-BASEL III TREATMENT

16825.00

60 Total risk weighted assets (row 60a +row 60b +row 60c) 1314343.56

60a of which: total credit risk weighted assets 1168116.44

60b of which: total market risk weighted assets 45602.90

60c of which: total operational risk weighted assets 100624.22

Capital ratios

61Common Equity Tier 1 (as a percentage of risk weighted

assets)7.66%

62 Tier 1 (as a percentage of risk weighted assets) 7.86%

63 Total capital (as a percentage of risk weighted assets) 10.72%

64

Institution specific buffer requirement (minimum CET1

requirement plus capital conservation and countercyclical

buffer requirements, expressed as a percentage of risk

i ht d t )

4.5%



LL H B D B NKAmounts below the thresholds for deduction (before risk weighting)

72 Non-significant investments in the capital of other financials 0.00

73 Significant investments in the common stock of financials 0.00

74 Mortgage servicing rights (net of related tax liability) 0.00

75Deferred tax assets arising from temporary differences (net of

related tax liability)0.00

Applicable caps on the inclusion of provisions in Tier 2

76Provisions eligible for inclusion in Tier 2 in respect of exposures

subject to standardised approach (prior to application of cap)13160.96

77Cap on inclusion of provisions in Tier 2 under standardised

approach14601.46

78

Provisions eligible for inclusion in Tier 2 in respect of exposures

subject to internal ratings-based approach (prior to application of

cap)

NA

79Cap for inclusion of provisions in Tier 2 under internal ratings-

based approach NA

Capital instruments subject to phase-out arrangements (only applicable between March 31, 2017 and March 31,

2021)

80Current cap on CET1 instruments subject to phase out

arrangements NA

81Amount excluded from CET1 due to cap (excess over cap after

redemptions and maturities) NA

82Current cap on AT1 instruments subject to phase out

arrangements NA

Amount excluded from AT1 due to cap (excess over cap after





LL H B D B NKOf which: Subordinated Debt – Tier II Capital 24119 C3

iv. Other liabilities & provisions 42589.75 -

Total 2085972.93

B. Assets

i.Cash and balances with Reserve Bank of India 88397.29 -

Balance with Banks and money at call and short notice 76382.01 -

ii.

Investments: 561553.08 -

of which: Government securities 464719.43 -

of which: Other approved securities 455.81 -

of which: Shares 4275.59 -

of which: Debentures & Bonds 35514.63 -

of which: Subsidiaries / Joint Ventures / Associates 1512.75 -

of which: Others (Commercial Papers, Mutual Funds etc.) 5507.49 -

iii.

Loans and advances 13189557.27 -

of which: Loans and advances to Banks -

of which: Loans and advances to customers -

iv. Fixed assets 12809.01 -

v.

Other assets 27874.27 -

of which: Goodwill and intangible assets 0.00 -

of which: Deferred tax assets 0.00 -





LL H B D B NKS. No. Parti culars Equity

32 If write-down, full or partial NA

33 If write-down, permanent or temporary NA

34 If temporary write-down, description of write-up

mechanism

NA

35 Position in subordination hierarchy in liquidation (specifyinstrument type immediately senior to instrument)

NA

36 Non-compliant transitioned features No

37 If yes, specify non-compliant features NA

B. Tier I capital instruments

The main features of Tier I Capital Instruments are as follows:

S.No.

Parti culars Tier I series I Tier I Series II

1 Issuer Allahabad Bank Allahabad Bank

2 Unique identifier (e.g. CUSIP, ISIN orBloomberg identifier for private

placement)

INE428A09091 INE428A09125

3 Governing law(s) of the instrument Indian Laws Indian Laws

Regulatory treatment

4 Transitional Basel III rules Additional Tier 1 Additional Tier I

5 Post-transitional Basel III rules Ineligible Ineligible

6 Eligible at solo/group/ group & solo Solo & Group Solo & Group

7 Instrument type Perpetual Perpetual

8 Amount recognised in regulatory capital(` in million, as of most recent reportingdate)

Rs 1350 million Rs 1350 million

9 P l f i t t R 1 illi B d R 1 illi B d



LL H B D B NKNo.

18 Coupon rate and any related index 9.20% p.a. payable annuallyfrom issue date till the firstcall option date and if theBank does not exercise thecall option, 50 bps over andabove coupon rate of 9.20%i.e. 9.70 % p.a. after 30thmarch, 2019

9.08% p.a., payable annuallyfrom issue date till first calloption date and if the Bankdoes not exercise the calloption, 50 bps over and abovecoupon rate of 9.08% i.e.9.58% p.a. after 18thDecember, 2019

19 Existence of a dividend stopper No No

20 Fully discretionary, partially discretionaryor mandatory

Partially discretionary Partially discretionary

21 Existence of step up or other incentive to

redeem

Yes Yes

22 Noncumulative or cumulative Non-cumulative Non-cumulative

23 Convertible or non-convertible Non-Convertible Non-Convertible

24 If convertible, conversion trigger(s) NA NA

25 If convertible, fully or partially NA NA

26 If convertible, conversion rate NA NA

27 If convertible, mandatory or optional

conversion

NA NA

28 If convertible, specify instrument typeconvertible into

NA NA

29 If convertible, specify issuer of instrumentit converts into

NA NA

30 Write-down feature No No

31 If write-down, write-down trigger(s) NA NA

32 If write-down, full or partial NA NA

33 If write-down, permanent or temporary NA NA34 If temporary write-down, description of

write-up mechanismNA NA

35 Position in subordination hierarchy in The claims of the The claims of the Bondholders



LL H B D B NKC. Tier II Capital Instruments

a. Upper Tier II capital Instruments

The main features of Upper Tier II Capital Instruments are as follows:

S. No. Parti culars Series I Series II

1. Issuer Allahabad Bank Allahabad Bank

2.

Unique identifier (e.g. CUSIP,ISIN or Bloomberg identifier forprivate placement)

INE428A09075 INE428A09117

3.Governing law(s) of theinstrument

Indian Laws Indian Laws


4. Transitional Basel III rules Tier 2

5. Post-transitional Basel III rules Ineligible

6.Eligible at solo/group/ group &solo Solo & Group

7. Instrument type Upper Tier II

8.

Amount recognised in regulatorycapital (` in million, as of mostrecent reporting date)

Rs 4500 million Rs 4500 million

9. Par value of instrument Rs 1 million per Bond Rs 1 million per Bond

10. Accounting classification Liability

11. Original date of issuance 19th march 2009 18th December 2009

12. Perpetual or dated Dated13. Original maturity date 19th March 2024 18th December 2024

14.Issuer call subject to priorsupervisory approval

Yes



LL H B D B NKS. No. Parti culars Series I Series II

20.Fully discretionary, partiallydiscretionary or mandatory

Partially discretionary Partially discretionary

21.Existence of step up or otherincentive to redeem

Yes

22. Noncumulative or cumulative Non-Cumulative Non-Cumulative

23. Convertible or non-convertible Non-Convertible Non-Convertible

24.If convertible, conversiontrigger(s)

NA NA

25. If convertible, fully or partially NA NA

26. If convertible, conversion rate NA NA

27.If convertible, mandatory or

optional conversion

NA NA

28.If convertible, specify instrumenttype convertible into

NA NA

29.If convertible, specify issuer ofinstrument it converts into

NA NA

30. Write-down feature No No

31.If write-down, write-downtrigger(s)

NA NA

32. If write-down, full or partial NA NA33.

If write-down, permanent ortemporary

NA NA

34.If temporary write-down,description of write-upmechanism

NA NA

35.

Position in subordinationhierarchy in liquidation (specifyinstrument type immediatelysenior to instrument)

The claims of the investors inthese Bonds shall be (a) superiorto the claims of investors ininstruments eligible for inclusionin Tier I capital; and (b)subordinate to the claims of allth dit

The claims of the investors inthese Bonds shall be (a) superiorto the claims of investors ininstruments eligible for inclusion inTier I capital; and (b) subordinateto the claims of all other creditors.



LL H B D B NK

BASEL III DISCLOSURES – SEP’2013 Page 24 of 25

b. Subordinate Bonds

The main features of Subordinate Bonds are as follows:

S. No. Particu lars Series V Series VI Series VII Series VIII Series IX1. Issuer Allahabad Bank Allahabad Bank Allahabad Bank Allahabad Bank Allahabad Bank

2.Unique identifier (e.g. CUSIP, ISIN orBloomberg identifier for privateplacement)

INE428A09042 INE428A09059 INE428A09067 INE428A09083 INE428A09109

3. Governing law(s) of the instrument Indian Laws Indian Laws Indian Laws Indian Laws Indian Laws


4. Transitional Basel III rules Tier 25. Post-transitional Basel III rules Ineligible

6. Eligible at solo/group/ group & solo Solo & Group

7. Instrument type Tier 2 Instruments

8. Amount recognised in regulatory capital (`in million, as of most recent reportingdate)

Rs 2000 million Rs 2247.60million

Rs 3000 million Rs 4000 million Rs 4500 million

9.Par value of instrument Rs 1 million per

Bond Rs 1 million perBond

Rs 1 million perBond



10. Accounting classification Liability

11.Original date of issuance 13th march 2006 29th September

200625th September2007

26th March 2009 4th August 2009

12. Perpetual or dated Dated

13.

Original maturity date 13th march 2016 29th September

2016

25th September

2017

26th March 2019 4th August 2019

14.Issuer call subject to prior supervisoryapproval

No

15.Optional call date, contingent call datesand redemption amount

No

16. Subsequent call dates, if applicable NA

Coupons / dividends17. Fixed or floating dividend / coupon Fixed



LL H B D B NK

BASEL III DISCLOSURES – SEP’2013 Page 25 of 25

S. No. Particu lars Series V Series VI Series VII Series VIII Series IX

18.Coupon rate and any related index 8.00% p.a.

payable semi-annually

8.85% p.a.payable annually




19. Existence of a dividend stopper No

20.Fully discretionary, partially discretionaryor mandatory

Partially discretionary

21.Existence of step up or other incentive toredeem

Yes

22. Noncumulative or cumulative Non-Cumulative23. Convertible or non-convertible Non-Convertible

24. If convertible, conversion trigger(s) NA25. If convertible, fully or partially NA

26. If convertible, conversion rate NA

27. If convertible, mandatory or optionalconversion

NA

28.If convertible, specify instrument typeconvertible into

NA

29.If convertible, specify issuer of instrumentit converts into

NA

30. Write-down feature No

31. If write-down, write-down trigger(s) NA

32. If write-down, full or partial NA33. If write-down, permanent or temporary NA

34.

If temporary write-down, description of

write-up mechanism NA

35.Position in subordination hierarchy inliquidation (specify instrument typeimmediately senior to instrument)

36. Non-compliant transitioned features Yes

37. If yes, specify non-compliant features No Basel III Loss Absorbency

Documents

Disclosures Formats Sep 13